Participation Requirement : All employees

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First and foremost, under the Finance Act 2014 , employees can receive a tax-free bonus of up to £3,600 per annum. The conditions for this bonus, which are defined in s312B of the Income Tax (Earnings and Pensions) Act 2003 , include:

Including expatriates, and in any company within the group structure, must be eligible for any qualifying bonus award at the time the award is determined.
Equality requirement : Employees must participate on equal terms. Variables such as remuneration, length of service and hours worked can determine the qualifying bonus. The equality requirement is violated if the plan benefits solely guatemala mobile database or primarily directors or top earners.
Office holder requirement : Payment will not be eligible if directors or office holders and other employees connected with them constitute more than 2/5 of the total employees within a private company.
HMRC's open consultation considers key issues relating to income tax-free bonuses . Notably, the Employee Ownership Association points out that, due to inflation, the real value of these tax-free bonuses has fallen since 2014. They suggest that the current appropriate limit should be £4,600+.